In a lease arrangement, who is the lessor?

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Multiple Choice

In a lease arrangement, who is the lessor?

In a lease, the lessor is the owner of the asset who grants the right to use it to another party under a contract in exchange for payments. For a car lease, the entity that purchases the vehicle and leases it to you is typically the finance company or bank—the one that owns the car for the lease term. You, the lessee, get to use the car and make payments, but you don’t own it unless you opt to buy it at the end. The dealer mainly acts as the seller and facilitator of the deal, while the insurance company provides coverage and does not own the vehicle. So the entity providing finance is the correct lessor.

In a lease, the lessor is the owner of the asset who grants the right to use it to another party under a contract in exchange for payments. For a car lease, the entity that purchases the vehicle and leases it to you is typically the finance company or bank—the one that owns the car for the lease term. You, the lessee, get to use the car and make payments, but you don’t own it unless you opt to buy it at the end. The dealer mainly acts as the seller and facilitator of the deal, while the insurance company provides coverage and does not own the vehicle. So the entity providing finance is the correct lessor.

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